This site uses cookies to store information on your computer. Some are essential to make our site work; others help us improve the user experience. By using the site, you consent to the placement of these cookies. Read our privacy policy to learn more.

A controversial measure on so-called “conflict minerals” that has
pitted human rights groups against business interests is among the
regulations the SEC will consider implementing during an open meeting
on Aug. 22.

The SEC is considering adopting regulations that would implement
Section 1502 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act, P.L. 111-203. The regulation is aimed at cutting off
funding for warlords in the Congo who commit atrocities against local
populations and use forced labor to mine for gold and other minerals
used in a variety of products, including jewelry and cell phones.

Section
1502 requires annual reporting on whether U.S. public companies
use conflict minerals originating in the Democratic Republic of the
Congo or neighboring countries in their products. It would require
public companies that use conflict minerals to document their chain of
custody. But that section of the law will not go into effect until the
SEC adopts rules to implement its requirements.

Human
rights groups have said the law will help reduce funding for
warlords who force locals into mining labor and commit human rights
violations. But some business
interests have said it will be difficult and costly to track
minerals back to their origins.

Another section of the Dodd-Frank Act that has put human rights
groups and big business at odds also is on the SEC’s agenda. Section
1504 requires U.S. public companies to disclose in an annual report
how much they pay governments worldwide for access to oil, natural
gas, and minerals.

In May, antipoverty advocate Oxfam America filed
a lawsuit asking the U.S. District Court for the District of
Massachusetts to order the SEC to issue a final rule. Human rights
groups have said the regulations would increase transparency and
accountability of leaders in resource-rich countries with high poverty rates.

The petroleum industry is among those who have fought
the requirements, saying they would be costly and put U.S.
public companies at a disadvantage in bidding against foreign competitors.

The SEC will meet at 10 a.m. on Aug. 22 in Washington; a webcast will be available.